We've regularly had up to 40 PCs (LTSP fat clients) PXE booting into VMware -hosted LTSP servers VMs, with no more than 4 GB attributed to the VM. This is in a multiple school environment, using computer labs. We automate an off-hours LTSP server reboot 2x a month to help clean things up and maybe only 3x a year do we need to do a server reboot manually. Sometimes we'll temporarily assign up to 4 CPUs when doing an image rebuild, as we've read somewhere that aids in the rebuild time (and I've seen that firsthand).
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